Question
Insurance that indemnifies the owner of real estate in
the event that his or her clear ownership of property is challenged by the discovery of faults in the title is called?Solution
Title insurance is indemnity insurance that protects the holder from financial loss sustained from defects in a title to a property. The most common type of title insurance is lender's title insurance, which the borrower purchases only to protect the lender. Owner's title insurance, paid for by the seller to protect the buyer's equity in the property, is available separately.
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